The USDA 2012 Census of Agriculture found that more and more farms are adopting alternative means of electric generation, such as on-property windmills, methane digesters, permanently installed generators and solar panels. Some farmers use the electricity to power their own farming operations, and some use it as an additional income source, selling power back to public utility grids.
Like any emerging technology or practice, alternative energy generation creates new insurance considerations.
Get the protection you need with AgriChoice®
Most farm owner policies exclude equipment breakdown coverage. If equipment breakdown is available at all, it’s sold as a separate policy. But with Nationwide's AgriChoice farm policy, equipment breakdown coverage for electrical generating equipment with an output of 250 kilowatts or less is available at no additional charge.
In addition to equipment breakdown, the AgriChoice policy may be used to provide property coverage for covered causes of loss to equipment used in alternative energy generation.
Keep in mind that electrical generating equipment will not automatically be covered. Covered equipment will need to be individually listed on your policy. Also, if your farm is selling electrical power back to a public utility service, this creates a liability exposure that would not be covered by a base farm policy. Talk to your agent to learn more.